Fresh talks for the on and off pursuit of a new trade deal between Kenya and the United States are set to kick of in less than two weeks.
This gives hopes to the much anticipated negotiations that began back in July 2020 during the Donald Trump and Uhuru Kenyatta administrations.
Administration changes in both countries following elections and the the Covid-19 pandemic have almost stalled the negotiations for a Free Trade Agreement (FTA), which kicked off 30 months ago.
After the US elections in November 2020, Joe Bidens’s administration took time to review part of the pact before initiating a fresh round of talks.
Kenya would then go into an election in August last year, which saw former Deputy President William Ruto ascend to power.
There is however a ray of hope after President Ruto and his delegation’s travelled to the US in December, for the US-Africa Leaders Summit in Washington.
Investments, Trade and Industry CS Moses Kuria and US Trade Representative Katherine Tai have agreed to commence physical meetings next month.
“Our team will be in the US on February 6, to start the negotiations on the strategic trade and investment partnership,” Kuria told the Star.
It takes up to two years to come up with a working FTA meaning Kenya will be keen to fast track the process before the expiry of the African Growth and Opportunity Act (AGOA), in 2025.
The February talks, according to Tai and Kuria’s offices, will kick off with instruments of expanding bilateral trade, inclusion of women and youth and supporting Micro, Small and Medium Enterprises.
Objectives captured in a document by the US Trade Representative’s office, indicates the country is keen to secure comprehensive market access for US agricultural goods in Kenya, by reducing or eliminating tariffs.
The US is also pushing for transparent and competitive procurement processes in the Kenya government tenders, effective protection of intellectual property rights, favourable sanitary and phytosanitary measure among other interests.
Kenya on the other hand seeks to protect its local industries and sectors even as it pushes for favourable terms to grow its exports to the US, the largest destination of its apparel accounting for over 90 percent of garment exports every year.
The AGOA program gives Kenya and 40 other sub-Saharan African countries duty-free access to the US market for over 6,000 products.
Africa is however keen to have the pact renewed this year.
More than 70 percent of Kenya's exports to the US are duty-free under AGOA.
With a bilateral deal, Kenya is keen to tap at least five per cent of the US market, which has the potential to earn the country more than Sh2 trillion in export revenues annually.
In 2021, Kenya's exports to the US grew to Sh59.5 billion, up from Sh49.3 billion the preceding year, with increases recorded in the exports of macadamia nuts and articles of apparel and clothing accessories.